Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Securities Commission reviews financial reports

21 February 2006

News Release


Securities Commission reviews financial reports

The Securities Commission has completed a second cycle of its financial surveillance programme which aims to help issuers improve the quality of their financial reports.

"High quality reporting enables investors to have confidence in the financial information provided by issuers, and contributes to the integrity of New Zealand’s securities markets,” says Chief Accountant Alastair Boult.

The Commission reviewed the audited full-year financial reports of 46 issuers with balance dates from 31 December 2004 to 31 March 2005. It also considered financial information in any current prospectuses, substantial security holder information, continuous disclosure notices and other sections of the annual report, such as the chairman’s report.

The selection of 46 issuers was made up of:

- 35 issuers listed on the NZX;

- 5 issuers listed on the NZAX;

- 1 issuer whose shares are traded on Unlisted, and

- 5 other non-listed issuers.


Reports of 19 issuers had some shortcomings. The Commission’s report on the Cycle 2 Review identifies the various shortcomings and how they should be addressed.

Some of the matters found were:

- large differences between actual and prospective information in one instance;

- inadequate actual versus prospective financial information comparisons and explanation;

- lack of a total recognised revenues and expenses line in the Statement of Movements in Equity;

- failure to date/and or sign the financial statements;

- apparent overstatement of value of a property intended for sale; and

- disclosure of an intangible under a separate heading in addition to current and non-current assets.


Cycle 2 findings were similar to Cycle 1 results in that few serious problems were identified, but a number of issuers need to raise the standard of their financial reporting.

The Commission will continue its Financial Reporting Surveillance Programme. The financial reports of early adopters of New Zealand equivalents of International Financial Reporting Standards with a 31 December 2005 balance date will be reviewed early in 2006. This will be part of the Commission’s plan to review disclosures and adjustments made by issuers as they move to NZ IFRS.

“We are publishing the report because this information will be useful to issuers who want to improve the quality of their financial reporting,” Alastair Boult says.

The report can be printed from the Commission’s website: www.sec-com.govt.nz or alternatively a hard copy can be ordered by calling 04-472 9830 or emailing seccom@sec-com.govt.nz .

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: